GameStop Corp (NYSE: GME) is scheduled to report its financial results for the third quarter on Wednesday, after the bell. Ahead of the earnings release, Placer.ai has some interesting insights into how the gaming merchandise retailer might have performed financially in the recent quarter.
GameStop topped pre-pandemic levels in October
Foot traffic at GameStop stores in October was up 3.2% on a year-over-two-year basis, Placer.ai revealed in its recent report. It was the first time since the start of the COVID-19 crisis that monthly store visits at GameStop topped the pre-pandemic levels.
The jump speaks both to the bump that the wider notoriety around the brand seems to have given to the company’s retail prospects and to a uniquely exciting holiday retail season. The combination of a desired product line, renewed joy around brick-and-mortar shopping, and wider pent-up demand could drive significant offline strength for the gaming retailer.
Shares of the $13.49 billion company are up more than 1.0% this morning.
Foot traffic turned red again in November
Unfortunately, though, the strength in foot traffic was short-lived as store visits turned red again in November. The decline, however, was seen across the retail sector at large, and wasn’t specific to GameStop.
On the bright side, store visits are likely to jump back up in December amidst holiday shopping. In its fiscal second quarter, GameStop noted a significant contraction in net loss, while sales jumped to $1.183 billion.
According to Yahoo Finance, analysts are expecting 52 cents of per-share loss in Q3 on $1.19 billion in sales. If GameStop beats estimates, the stock that’s tanked over 25% in two weeks, could start to rebound.
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